Home Mortgage Alliance Corporation (HMAC)

Rate markets flat as job openings surge

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Published Date 7/7/2020

Today's Mortgage Rate Summary

How Rates Move:

Conventional and Government (FHA and VA) lenders set their rates based on the pricing of Mortgage-Backed Securities (MBS) which are traded in real time, all day in the bond market. This means rates or loan fees (mortgage pricing) moves throughout the day, being affected by a variety of economic or political events. When MBS pricing goes up, mortgage rates or pricing generally goes down. When they fall, mortgage pricing goes up.

Rates Currently Trending: Neutral

Mortgage rates are moving sideways so far today. The MBS market improved by +12 bps yesterday. This caused rates or fees to mostly move sideways to very slightly lower for the day. Rate markets experienced low volatility.

Today's Rate Forecast: Neutral

Jobs: The May Job Openings and Labor Turnover Survey (JOLTS) showed unfilled jobs increased to 5.397M vs. est. of 4.85M.

Treasury Dump: We kick off three days of dumping our debt into the marketplace with the shorter term 3 year note at 1:00 pm ET.

The Fed: Vice Chair Randal Quarles will speak at 1:00 pm ET.

Central Bank: The Reserve Bank of Australia kept its key interest rate at 0.25%.

Today's Potential Rate Volatility: Low

The rate markets didn't receive any market-moving news this morning. As a result, rate markets will move sideways on low volatility today.

Bottom Line:

If you are looking for the risks and benefits of locking your interest rate in today or floating your loan rate, contact your mortgage professional to discuss it with them.

Source: TBWS

All information furnished has been forwarded to you and is provided by thetbwsgroup only for informational purposes. Forecasting shall be considered as events which may be expected but not guaranteed. Neither the forwarding party and/or company nor thetbwsgroup assume any responsibility to any person who relies on information or forecasting contained in this report and disclaims all liability in respect to decisions or actions, or lack thereof based on any or all of the contents of this report.

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